Agri-Pulse Daybreak June 24, 2016

WASHINGTON, June 24, 2016 - U.S. agriculture has reached a
critical milestone with the Senate’s historic agreement on national disclosure
standards for biotechnology. If enacted, the deal between Senate Agriculture
Chairman Pat Roberts and ranking Democrat Debbie Stabenow will allow disclosure
through digital, smartphone codes as an option to wording or symbols on package
labels.

Just as importantly, plants and animals that are modified
through the new techniques of genetic engineering, including gene editing,
won’t be considered biotech. That means those products will be exempt from
disclosure. That exemption won’t allow biotech companies to sidestep federal
safety reviews for new, genetically modified traits, but it does protect the
products from any stigma that might come from being labeled as genetically
engineered.

Roberts wasn’t overstating the significance of the deal when
he declared that it “saved agricultural biotechnology.”

The challenge now is to get floor time. The bill should
have the 60 votes it will need to pass the Senate. Many Democrats are following
Stabenow’s lead on the issue. Roberts has said he thought she could bring along
as many as 15 to 20 Democratic votes.

Stabenow almost certainly broadened support for the deal by
insisting on mandatory disclosure standards and by including a provision that
would allow certified organic products to be labeled as non-GMO. The Organic
Trade Association praised the deal, citing both the mandatory standards and the
non-GMO provision for organic products.

But there is little time left for Congress to get the
legislation to President Obama’s desk before lawmakers break for the party
conventions in July and the August recess that follows. A GOP leadership aide
said it will likely be hard to get a vote on the bill next week because of
procedural hurdles. The Senate is scheduled to be out of session from July 15
until September. The House is expected to approve the legislation once it
passes the Senate.

Some activists are still fighting the agreement. Consumers
Union criticized the relatively narrow definition of bioengineering as well as
the lack of a requirement for on-package labeling. But Gary Hirschberg,
chairman of the Just Label It coalition, issued a statement that seemed to
concede that the agreement is going to become law. He said the fight will now
“shift to the marketplace and to USDA.”

The agreement is expected to have broad support from farm
and agriculture groups, although some say they still need to study the details.
The American Farm Bureau Federation says it’s concerned that the mandatory
disclosure could alarm consumers, but the group also said it’s important to
avoid a patchwork of state labeling laws.
The Grocery Manufacturers Association called the legation a “commonsense
solution for consumers, farmers and businesses” and urged the Senate to pass it
quickly.

The American Soybean Association immediately began urging
growers to contact their senators and urge them to support the bill. “E-mails
and calls are needed to all 60 soy-state Senate offices repeatedly until this
legislation passes,” ASA said in an alert to members.

Agribusiness execs to meet Clinton campaign. Executives
representing top agribusiness groups will be meeting with the Hillary Clinton
campaign today in New York to go over the industry’s top policy concerns. The
executives represent an informal collection of trade groups, including the
American Farm Bureau Federation, CropLife America, National Council of Farmer
Cooperatives and major commodity organizations.

The group is seeking a similar meeting with the Donald Trump
campaign. The group has developed a series of policy papers that cover issues
such as the farm bill, food safety and trade.

Ruling sets back immigration reform, Obama says. President
Obama says that comprehensive immigration reform – a major goal of farm groups
– is less likely to happen anytime soon thanks to yesterday’s Supreme Court
ruling on his executive actions.

The 4-4 ruling blocks the administration from moving forward
with its plan to allow millions of illegal immigrants to legally work in the
United States. Some in agriculture are concerned that the plan would leave them
with fewer workers and no source of replacements.

Farmers say what they need is a comprehensive immigration
bill like the one that the Senate approved in 2013. The House refused to give
the bill a vote.

Obama said that “Congress is not going to be able to ignore
America forever. It's not a matter of if, it's a matter of
when.”

Western Growers President and CEO Tom Nassif renewed the
group’s call for immigration reform. “Any reform measure should include
provisions granting legal status to existing farmworkers and one that creates a
new, more workable and market-oriented visa program to ensure a future flow of
labor,” he said.

The United Farm Workers called the Supreme Court ruling a
“setback for hardworking immigrant families.”

Brazilian pork and poultry industries desperate for feed. Brazil’s
weak currency is driving farmers to sell their corn overseas. The mass grain
exodus, together with a smaller than normal harvest, is pushing pork and
poultry producers to cut production, according to USDA’s Foreign Agricultural Service.

Brazil’s corn exports in the first several months of 2016
are already up by 138 percent from last year, and that has pushed domestic
prices to record highs. In response, chicken production has dropped 10 percent
and pork producers have reduced insemination rates by 15 percent.

USAID nominee approved. The Senate yesterday confirmed
David Harden’s nomination to become USAID’s assistant administrator for
democracy, conflict, and humanitarian assistance. Harden has been serving as
mission director for the West Bank and Gaza.

She said it. “Throughout this process I worked to
ensure that any agreement would recognize the scientific consensus that
biotechnology is safe, while also making sure consumers have the right to know
what is in their food. I also wanted a bill that prevents a confusing patchwork
of 50 different rules in each state. This bill achieved all of those goals, and
most importantly recognizes that consumers want more information about the foods
they buy.” - Debbie Stabenow, the ranking Democrat on the Senate Agriculture
Committee.

This week’s guest on Open Mic is Ken Dallmier, President and COO of Clarkson Grain Company. While the global grain business is dominated by supply, demand and now trade wars, this Illinois-based company functions under a customer-focused mindset. Dallmier says this generation of consumer demand is dominated by a different set of social values leading to questions over the way food is produced and the prices they’re willing to pay. Sustainability, organic and non-GMO are providing farmers an income stream isolated from traditional market forces.

Department of Transportation Secretary Elaine Chao and Environmental Protection Agency Acting Administrator of the Andrew Wheeler recently announced their intent to reassess and correct the Corporate Average Fuel Economy standards.

The world of agriculture extends beyond what’s growing in your field or living in your barn, and here at Agri-Pulse, we understand that. We make it our duty to inform you of the most up-to-date agricultural and rural policy decisions being made in Washington D.C. and examine how they will affect you – the farmer, the lobbyist, the government employee, the educator, the consultant and the concerned citizen.